1. The debit and credit columns of your AJE's (columns E and G) should total to:...

 

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1. The debit and credit columns of your AJE's (columns E and G) should total to: $ 1,033,227 2. The Trial Balance After Adjustment (Columns H & J) should both total to: $15,502,008 If you get both of these check figures, this indicates that you will correctly report Net Income, your Balance Sheet will be correct, as well as your Stockholder's Equity balances. Helpful Hints: a. You will have (5) closing entries. They include the following: 1. Closing Entry #1: Close ALL revenues to Income Summary. The credit to Income Summary will therefore represent Sales Rev + Service Rev + Interest Rev for the period. II. Closing Entry #2: Close ALL expenses to Income Summary. Every individual expense, loss, sales returns & discounts account must be closed out with a credit, and the sum of all expenses/losses/returns & discounts can then be debited to your Income Summary in this entry. II Closing Entry #3: Take the difference between the credit posted to Income Summary (Closing Entry #1) less the debit posted to Income Summary (Closing Entry #2) to close out the Income Summary account and permanently move NI to R.E. iv. Closing Entry #4: Close out the dividend directly to R.E. v. Closing Entry #5: Close the Unrealized Gain-AFS (the account title that appears on your comprehensive income Statement) to Accumulated Other Comprehensive Income (the equity account on the balance sheet). This closes out your Other Comprehensive Income (OCI) account & transfers its balance to your permanent Balance Sheet account "Accumulated Other Comprehensive Income". Just like NI is permanently closed into Retained Earnings, your OCI items from the current year also need to be closed out and permanently stored in the Accumulated OCI account under Stockholder's Equity on your Balance Sheet. A AJE # 123456789012841515F181920 24 22 23 24 25 26 27 28 29 30 1 5. 21 444444 212345679 41 43 31 32 7 33 34 35 36 8 37 38 39 9 40 44 45 1 24 2 42 10 3 47 48 4 6 46 11 B Account Name Wage Expense Wages Payable Payroll Taxes Expense Payroll Taxes Payable Unearned Consulting Services Revenue Consulting Services Revenue Sales Accounts Receivable Inventory Cost of Goods Sold Allowance for Doubtful Accounts Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts Insurance Expense Prepaid Insurance Amortization Expense - #FJ101 Amortization Expense - #CQ510 Patent-#FJ101 Patent-# CQ510 Interest Expense Interest Payable Accrued Interest Receivable Interest Revenue Dividends Didends Payable Fair Value Adjustment Unrealized Holding Gain Tax Expense Income Tax Payable D DR 39,800 2,900 212,043 86,400 47,520 18,450 44,767 21,424 15,400 16,900 10,524 22,800 220,000 12,400 216,767 E CR 39,800 2,900 212,043 86,400 47,520 18,450 44,767 21,424 15,400 16,900 10,524 22,800 220,000 12,400 216,767 1. The debit and credit columns of your AJE's (columns E and G) should total to: $ 1,033,227 2. The Trial Balance After Adjustment (Columns H & J) should both total to: $15,502,008 If you get both of these check figures, this indicates that you will correctly report Net Income, your Balance Sheet will be correct, as well as your Stockholder's Equity balances. Helpful Hints: a. You will have (5) closing entries. They include the following: 1. Closing Entry #1: Close ALL revenues to Income Summary. The credit to Income Summary will therefore represent Sales Rev + Service Rev + Interest Rev for the period. II. Closing Entry #2: Close ALL expenses to Income Summary. Every individual expense, loss, sales returns & discounts account must be closed out with a credit, and the sum of all expenses/losses/returns & discounts can then be debited to your Income Summary in this entry. II Closing Entry #3: Take the difference between the credit posted to Income Summary (Closing Entry #1) less the debit posted to Income Summary (Closing Entry #2) to close out the Income Summary account and permanently move NI to R.E. iv. Closing Entry #4: Close out the dividend directly to R.E. v. Closing Entry #5: Close the Unrealized Gain-AFS (the account title that appears on your comprehensive income Statement) to Accumulated Other Comprehensive Income (the equity account on the balance sheet). This closes out your Other Comprehensive Income (OCI) account & transfers its balance to your permanent Balance Sheet account "Accumulated Other Comprehensive Income". Just like NI is permanently closed into Retained Earnings, your OCI items from the current year also need to be closed out and permanently stored in the Accumulated OCI account under Stockholder's Equity on your Balance Sheet. A AJE # 123456789012841515F181920 24 22 23 24 25 26 27 28 29 30 1 5. 21 444444 212345679 41 43 31 32 7 33 34 35 36 8 37 38 39 9 40 44 45 1 24 2 42 10 3 47 48 4 6 46 11 B Account Name Wage Expense Wages Payable Payroll Taxes Expense Payroll Taxes Payable Unearned Consulting Services Revenue Consulting Services Revenue Sales Accounts Receivable Inventory Cost of Goods Sold Allowance for Doubtful Accounts Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts Insurance Expense Prepaid Insurance Amortization Expense - #FJ101 Amortization Expense - #CQ510 Patent-#FJ101 Patent-# CQ510 Interest Expense Interest Payable Accrued Interest Receivable Interest Revenue Dividends Didends Payable Fair Value Adjustment Unrealized Holding Gain Tax Expense Income Tax Payable D DR 39,800 2,900 212,043 86,400 47,520 18,450 44,767 21,424 15,400 16,900 10,524 22,800 220,000 12,400 216,767 E CR 39,800 2,900 212,043 86,400 47,520 18,450 44,767 21,424 15,400 16,900 10,524 22,800 220,000 12,400 216,767

Answer rating: 100% (QA)

1 AJE 1 Debit Wage Expense 39800 Credit Wages Payable 39800 2 AJE 2 Debit Payroll Taxes Expense 2900 ... View the full answer